Precious Metals Crash as Dollar Surge Triggers Historic Selloff
Gold and silver markets collapsed in a violent reversal, erasing recent record highs with unprecedented speed. Spot gold plunged 10% Monday, marking a 20% retreat from last week's all-time peak of $5,626.80. The selloff accelerated after President Trump's Federal Reserve nomination strengthened the dollar, forcing overextended traders to unwind positions.
Silver suffered even steeper losses, tumbling 16% to wipe out all 2026 gains. The WHITE metal's descent below $71.66 represents a complete reversal of its parabolic rally. Market veterans describe the precious metals complex as having become "too crowded" before the abrupt correction.
The dollar's resurgence has rewritten commodity market dynamics overnight. Friday's record intraday drop in silver foreshadowed Monday's carnage, with gold futures now testing critical support at $4,500. This marks the most severe precious metals contraction since the 2013 taper tantrum.
